HONG KONG (Reuters) – Best Inc, a Chinese logistics company backed by Alibaba Group, has launched an up to $932 million initial public offering, seeking funds to expand its logistics and supply chain network, develop new technology and open more of its convenience stores.
The Hangzhou-based company is offering 53.56 million new American Depositary Shares (ADS), each representing one class A ordinary share, in an indicative range of $13 to $15 each, according to a filing with the U.S. Securities and Exchange Commission on Wednesday.
Existing shareholders including private equity firms CDH Investments, China Renaissance Capital, state-owned Everbright Financial Holding Investment Holding and a unit of Goldman Sachs Group Inc, are selling another 8.54 million ADSs.
The company plans to use $300 million of the proceeds to expand its convenience stores and its logistics and supply chain services, with another $100 million set aside for technology investments and the remainder for general corporate purposes and potential acquisitions.
Reporting by Elzio Barreto; Editing by Edwina Gibbs